CBS News
Here’s how much the price of gold has jumped since January (and why you should invest now)
Getty Images/iStockphoto
For centuries, gold has been used as a form of currency and as a safe and effective way to protect your money. What the precious metal has generally not been, however, is an effective income-producing investment. Instead, it’s been a safe haven, particularly during times of inflation and economic turmoil, as has been the pattern in recent years.
But the price of gold has surged so far this year, making some investors wonder about the unique income-producing feature of the metal right now. Is it worth investing in to turn a quick profit or are investors better served looking elsewhere? That’s what we will break down below, starting with an analysis of the price growth gold has seen so far in 2024.
Learn more about the benefits of investing in gold now here.
Here’s how much the price of gold has jumped since January
The price of gold has grown significantly since January 1, breaking numerous price records in the first few months of the year. To start the year, gold was priced at $2,063.73 per ounce, according to American Hartford Gold. That cost has since risen by hundreds of dollars, with the precious metal now priced at $2,355.88 for the same amount of the metal (as of May 14, 2024). That’s just over a 14% rise in price. So if you had bought in at that opening price you would have potentially made hundreds (if not thousands) of dollars, depending on the amount you purchased and any markup you paid in the process.
But, if you didn’t buy low, you may still have an opportunity to get in and turn a rare profit. Because gold is known for its ability to hedge inflation (thanks to a steady price when other assets falter) and because inflation is still problematic (the next inflation report will be released on Wednesday), the demand for the metal is likely to remain strong — and the corresponding price will be competitive. Because of the timely benefits of gold investing, however, it may not make sense to delay, either. Instead, start exploring your top gold options now to learn more.
Why you should invest in gold now
While the ability to turn a quick profit with gold is enticing, particularly for beginners, it’s not the only advantage the yellow metal offers investors. Here are two others to understand:
- A hedge against inflation: As noted, gold tends to perform strongly when inflation is problematic. That’s due to its price resilience during these economic periods. The price of gold has risen after inflation reports were released in each of the first four months of 2024. And with the next inflation report scheduled to be released May 15, it would behoove investors to get started now before the price potentially becomes prohibitive.
- A portfolio diversifier: Because gold tends to perform differently than traditional assets do, it’s considered a great way to diversify your portfolio. When added to a well-rounded portfolio, gold can help buffer against negative consequences felt elsewhere. To improve the effectiveness of gold as a diversifier, however, experts recommend limiting it to 10% or less of your overall portfolio.
The bottom line
With a growing price and the benefit of some protection against inflation, now is a great time to invest in gold. By acting now, investors could potentially turn a quick profit (a rarity in the gold investing market) and they can do so by effectively diversifying their portfolio at the same time. That noted, gold investing isn’t right for everyone, so it’s important to carefully consider the pros and cons of this unique asset before getting started.
CBS News
$100 million in federal funds released for North Carolina to rebuild roads, bridges damaged by Helene
Washington, D.C. – The U.S. Department of Transportation released $100 million in emergency funds on Saturday for North Carolina to rebuild its roads and bridges damaged by Helene.
“We are providing this initial round of funding so there’s no delay getting roads repaired and reopened, and re-establishing critical routes,” said U.S. Transportation Secretary Pete Buttigieg in a statement. “The Biden-Harris administration will be with North Carolina every step of the way, and today’s emergency funding to help get transportation networks back up and running safely will be followed by additional federal resources.”
The storm caused rampant flooding that has devastated several towns and killed more than 225 people – with CBS News confirming at least 114 people killed in North Carolina. There was more than 8 inches of rain across the western North Carolina mountains, with some areas seeing more than a foot.
Hundreds of roads across Western North Carolina remain closed, leading to an increase in air traffic as teams scour the region for survivors by air. Air traffic over Western North Carolina has increased by 300% due to relief efforts since the storm cleared, the Federal Aviation Administration and the North Carolina Department of Transportation.
Mudslides blocked Interstate 40 and other highways in North Carolina and about 400 roads were closed due to damage from Helene. Interstate 40 was damaged at several locations, the Department of Transportation said.
President Biden visited the Carolinas on Wednesday, surveying the flood damage by air from Greenville, South Carolina, to Asheville, North Carolina. Mr. Biden announced the federal government would cover “100%” of all debris removal and emergency protective measure costs in North Carolina for six months.
The Department of Transportation said these relief funds will allow the North Carolina Department of Transportation to act more quickly to fund eligible repairs to their damaged facilities.
Li Cohen and
contributed to this report.
CBS News
Tropical Storm Milton forms in Gulf; forecast to strengthen into hurricane headed toward Florida
Tropical Storm Milton has formed in the Gulf of Mexico and is forecast to strengthen into a hurricane headed toward Florida with possible impacts to its western coast, the National Hurricane Center said on Saturday. Maximum sustained winds are expected to be at 40 mph with higher gusts and Milton is currently moving north-northeast, NHC said in an advisory.
Milton is forecast to undergo a period of rapid intensification before it makes landfall as a Category 2 hurricane across Florida’s west coast, CBS News Miami reported.
The forecast comes a little more than a week after Hurricane Helene made landfall in Florida and across the Southeast, killing more than 200 people and causing immense destruction. President Biden on Thursday took an aerial tour of Florida’s Big Bend where Helene struck as a Category 4 storm. Hundreds of people are still missing and Mr. Biden said the work to rebuild will cost “billions of dollars” as communities suffer still without power, running water and passable roads.
NOAA
Milton is forecast to move across the southwestern Gulf of Mexico through Sunday night then across the south-central Gulf on Monday and Tuesday before reaching Florida’s west coast by the middle of the week, NHC said. Heavy rain is possible in the region starting Sunday into Monday, CBS Miami reported, and more rain and heavy winds will most likely arrive on Wednesday. Hurricane and storm surge watches will most likely be required for portions of Florida starting Sunday, the National Hurricane Center said.
Along with the heavy rainfall, the hurricane center said to expect risks of flooding.
Residents in the area should ensure they have a hurricane plan in place, the National Hurricane Center said, follow the advice of local officials and check back for forecast updates.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Minneapolis boosting synagogue patrols through Jewish Holy Days amid hateful rhetoric
$100 million in federal funds released for North Carolina to rebuild roads, bridges damaged by Helene
Nine years after his murder, Barway Collins returns to a community that won’t forget him
Minneapolis boosting synagogue patrols through Jewish Holy Days amid hateful rhetoric
$100 million in federal funds released for North Carolina to rebuild roads, bridges damaged by Helene